Tax question re backdated pay

dgiise

Thanks for breaking it down for me clapton. I didnt know that your NI rate went down if you earn over 3500p/m.

CLAPTON

I don't understand your figures

you say you have been earning 32,000pa but should have been earning 38,000pa

so for 2011-12 you were underpaid 6000
and by November you were owed 8 months worth i.e. 6000 x 8 /12 =4000

i.e 10,000 in total but you say you actually got 11,500

maybe the details aren't quite right here.

dgiise

Yeah I rounded the figures a little

Its more complicated than that, as there has been small pay increments though-out the 2 years , I am still trying to work it out fully myself.

In April 2011 - I was on 29500, but should have been on 37200.
Then in April 2012, an incremental pay rise meant I was on 31900 but should have been on 38800

so April 2011 - March 2012 - = diff of £642pm
April 2012-Oct 2012 - = diff of £575

so (642*12) + (575*7) = £11729 backdated payment

which is what I got (give or take a few quid)

CLAPTON

it's all about detail


but as far as student loan is concerns the phasing of your salary makes no difference as every month you earned more than 1250